The IT managed services market in the United States is segmented into six regions, West U.S., Northeast U.S., Southeast U.S., Southwest U.S., and Midwest U.S. Out of these, the market in the West U.S., which comprises of four major states, including California, Alaska, Washington and Oregon, is projected to hold the largest market share of 26.90% by 2028 by growing with the highest CAGR of 11.7% during the forecast period. The market in the region is further expected to reach USD 47035.6 Million by the end of 2028, up from USD 18298.8 Million in 2019.Factors projected to propel the market growth in this region are increasing technological advancements in artificial intelligence and IoT technologies, and the rising need for cost-effective IT budgets for the enforcement of IT managed services across organizations. Apart from these, the growth of the market in this region is also dependent on the growing adoption of innovative technologies in the BFSI, transportation, government & defense, retail & e-commerce, and other sectors. Moreover, out of all the states in the west United States, California is projected to witness the highest CAGR of 12.1% during the forecast period owing to the strong presence of major industry players who thrive to deliver reliable and positive digital practices.
The United States and Puerto Rico IT managed services market is segmented on the basis of enterprise size into small & medium enterprises and large enterprises. In the United States, the segment for large sized enterprises is evaluated to occupy a large revenue of USD 1,08,552.3 million by the end of 2028, up from USD 46,569.3 million in 2019. In 2021, the value is calculated to be USD 55,008.3 million. The expansion of this market segment can be ascribed to the presence of strong architecture and large revenue pool of large enterprises to implement managed services. Moreover, the segment for small & medium sized enterprises (SMEs) in the United States is estimated to observe the highest CAGR of 11.9% during the forecast period owing to the increasing establishment of IT startups, escalating adoption of complex automation systems and growing usage of cloud-based technologies in SMEs. In 2018, there were more than 30 small businesses operating in the United States. On the other hand, the large enterprises segment in Puerto Rico is projected to gain the highest market revenue of USD 578.2 Million by the end of 2028.
Additionally, based on industry vertical, the segment for BFSI in the United States is expected to occupy the largest market share of USD 7.053.8 million by the end of 2021 and observe notable growth of 13.4% over the forecast period, owing to the high investments of banks and other institutions for the deployment of IT managed services.
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the United States and Puerto Rico IT managed services market that are included in our report are IBM Corporation, Infosys Limited, Cisco System Inc., DXC Technology Company, Accenture PLC, Hewlett Packard Enterprise Development LP, AT&T Inc., Verizon Communications Inc, Dell Technologies Inc., Tata Consultancy Services Limited, Rackspace Technology, iNubo IT, CP CORP, and others.
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In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: The major growth drivers for the market are rising need for IT infrastructure among different industries, emphasis on core business and reduced risk and the ability of IT managed services to offer financial benefits.
Ans: The market is anticipated to attain a CAGR of 11% over the forecast period, i.e., 2020-2028.
Ans: The major players in the market are IBM Corporation, Infosys Limited, Cisco System Inc., DXC Technology Company, Accenture PLC, Hewlett Packard Enterprise Development LP, AT&T Inc, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by enterprise size, service type, deployment, industry vertical, and by region.
Ans: Increasing number of security breach and cyber threats and absence of skilled IT and cybersecurity professionals estimated to hamper the market growth.